To create a good business development strategy, it is important to understand what organic and inorganic growth are and the differences between the two.
Business growth or development has become one of the determinants of the success or failure of a business itself.
Whether in selling products or services, business growth needs to be thought through carefully so that the direction is always clear.
So, so you don't make the wrong move, you have to know what organic and inorganic growth are and the differences between the two.
Read more in the article below.
Quoted by Indeed, organic growth is the growth of a business that is obtained from the production of regular activities and operations such as sales of products and services.
A company that wants to grow organically must leverage its business model, practices, and workforce to increase sales and service.
The efforts made by a business to grow organically also vary, starting from product innovation, improving services, advertising in the media, and others.
This is also the basic difference between organic and inorganic growth later.
Reported by Preferred CFO, here are some of the advantages of using organic growth methods:
Businesses that develop by means of inorganic growth carry out mergers and acquisitions or by expanding the company.
According to Indeed, inorganic growth can develop with several efforts such as opening a business in another location, taking out a loan, or adding business lines.
Expanding or adding business locations is an important part of inorganic growth, as well as an important effort for company development.
Inorganic growth will increase the company's assets, operations, liabilities and liquidity.
Despite having to face the challenges of entering new markets and restructuring, inorganic growth has the following advantages:
Indeed says there are several basic things that make up the difference between organic and inorganic growth.
In general, the difference between organic and inorganic growth can be seen from their meaning. Organic growth is a company strategy to develop internally or from within the company, while inorganic growth comes from external/outside the company.
Apart from these basic things, here is a list of the differences between organic and inorganic growth:
The first fundamental difference between organic and inorganic growth in business is the period of time the impact will be felt on the business.
Inorganic growth will have an increasing impact in the short term through acquisition or additional business locations.
Meanwhile, increasing business with an organic growth strategy will require a longer and more stable period of time.
Inorganic growth will carry big risks if you carry out a merger or acquisition of a company that has financial problems.
Another risk that may also arise is having to add business lines and enter new markets.
Meanwhile, the risk of organic growth tends to be lower because it is carried out simultaneously with efforts to develop existing products/services.
A business strategy using organic growth will focus more on the products/services that the company already has at that time, so that the impact on the business will not be too big.
Meanwhile, in inorganic growth, greater challenges must be faced because the company may stop or replace new products/services.
In terms of market competition, organic growth will experience tougher competition.
For inorganic growth itself, competition will be more focused because merging companies will make it easier to lead competition in the market.
For the company's future, the difference between organic and inorganic growth can be seen from the rate or steps of development.
Organic growth will create a more stable future and a safer pace for company development.
Meanwhile, due to mergers or acquisitions, inorganic growth will make the company have more stakeholders who play a role in the company and reduce individual control.
One of the significant benefits of inorganic growth is the increase in resources from employees, experts and other resources.
Meanwhile, organic growth has limitations because it relies on existing resources in the company.
So, after knowing the difference between organic and inorganic growth, you need to choose the best between the two for your business.
Both have their respective roles and advantages and risks in the company's development. Not all companies or business types fit both.
If you want to develop a product or service, organic growth will be better. However, when the goal is to expand the company's business, it can adopt inorganic growth.
Companies with good business development are those that can adopt both business strategies in a balanced manner.
In order not to choose the wrong business strategy, it is important to understand how to analyze the two strategies.
The goal is of course to produce a strategy that can be implemented well and optimally.
Want to learn about business strategy analysis? You can take the Strategic Business Analysis class at the Prasetiya Mulya Executive Learning Institute, you know!
Complete your strategic business analysis skills by registering for the class now!
To create a good business development strategy, it is important to understand what organic and inorganic growth are and the differences between the two.
Business growth or development has become one of the determinants of the success or failure of a business itself.
Whether in selling products or services, business growth needs to be thought through carefully so that the direction is always clear.
So, so you don't make the wrong move, you have to know what organic and inorganic growth are and the differences between the two.
Read more in the article below.
Quoted by Indeed, organic growth is the growth of a business that is obtained from the production of regular activities and operations such as sales of products and services.
A company that wants to grow organically must leverage its business model, practices, and workforce to increase sales and service.
The efforts made by a business to grow organically also vary, starting from product innovation, improving services, advertising in the media, and others.
This is also the basic difference between organic and inorganic growth later.
Reported by Preferred CFO, here are some of the advantages of using organic growth methods:
Businesses that develop by means of inorganic growth carry out mergers and acquisitions or by expanding the company.
According to Indeed, inorganic growth can develop with several efforts such as opening a business in another location, taking out a loan, or adding business lines.
Expanding or adding business locations is an important part of inorganic growth, as well as an important effort for company development.
Inorganic growth will increase the company's assets, operations, liabilities and liquidity.
Despite having to face the challenges of entering new markets and restructuring, inorganic growth has the following advantages:
Indeed says there are several basic things that make up the difference between organic and inorganic growth.
In general, the difference between organic and inorganic growth can be seen from their meaning. Organic growth is a company strategy to develop internally or from within the company, while inorganic growth comes from external/outside the company.
Apart from these basic things, here is a list of the differences between organic and inorganic growth:
The first fundamental difference between organic and inorganic growth in business is the period of time the impact will be felt on the business.
Inorganic growth will have an increasing impact in the short term through acquisition or additional business locations.
Meanwhile, increasing business with an organic growth strategy will require a longer and more stable period of time.
Inorganic growth will carry big risks if you carry out a merger or acquisition of a company that has financial problems.
Another risk that may also arise is having to add business lines and enter new markets.
Meanwhile, the risk of organic growth tends to be lower because it is carried out simultaneously with efforts to develop existing products/services.
A business strategy using organic growth will focus more on the products/services that the company already has at that time, so that the impact on the business will not be too big.
Meanwhile, in inorganic growth, greater challenges must be faced because the company may stop or replace new products/services.
In terms of market competition, organic growth will experience tougher competition.
For inorganic growth itself, competition will be more focused because merging companies will make it easier to lead competition in the market.
For the company's future, the difference between organic and inorganic growth can be seen from the rate or steps of development.
Organic growth will create a more stable future and a safer pace for company development.
Meanwhile, due to mergers or acquisitions, inorganic growth will make the company have more stakeholders who play a role in the company and reduce individual control.
One of the significant benefits of inorganic growth is the increase in resources from employees, experts and other resources.
Meanwhile, organic growth has limitations because it relies on existing resources in the company.
So, after knowing the difference between organic and inorganic growth, you need to choose the best between the two for your business.
Both have their respective roles and advantages and risks in the company's development. Not all companies or business types fit both.
If you want to develop a product or service, organic growth will be better. However, when the goal is to expand the company's business, it can adopt inorganic growth.
Companies with good business development are those that can adopt both business strategies in a balanced manner.
In order not to choose the wrong business strategy, it is important to understand how to analyze the two strategies.
The goal is of course to produce a strategy that can be implemented well and optimally.
Want to learn about business strategy analysis? You can take the Strategic Business Analysis class at the Prasetiya Mulya Executive Learning Institute, you know!
Complete your strategic business analysis skills by registering for the class now!
